<P>The joint venture between Mukesh Ambani run Reliance Industries Limited (RIL) and British Petroleum (BP), which was inked into reality nearly three months ago, has finally been put into operational mode as mandates from both parties get finalized.</P>
<P>The deal which was embedded in Indian business history as the largest ever deal to be signed on Indian turfs, generating the largest Foreign Direct Investment (FDI) so far, saw the British major claim 30 per cent stake in 23 oil and gas explorations of RIL at a staggering $ 7.2 billion. The total investments are likely to touch $ 20 billion. While Reliance gets technical assistance for immaculate exploration of its existing and prospective blocks, BP is hopeful of settling into newer markets with a steady footing, guided by Reliance.</P>
<P>Although many ministerial approvals are yet to be sorted, the JV has commenced operations on its plans via two mutual groups that have been set up with specific sanctions. The first group is a Joint Implementation Centre (JIC), consisting of three representatives from RIL and BP respectively. Senior RIL executives B Ganguly, senior vice-president, commercial; S C Verma, president, field development, and Rabi Bastia, senior VP and head of exploration are set to be on the JIC. Down the line, this group will likely convert into a high level overseeing committee, which will oversee the workings of the JV and manage the 23 exploration and production blocks in which BP has claimed stakes. A second group; a technical committee, will head the technical matters related to the deal and will jointly agree on what needs to be done with each of the stipulated blocks. It will, though, have the final say on important decisions pertaining to the same. It will be a six member team consisting of two members from BP and four from RIL’s exploration and development divisions.</P>
<P>Given Reliance’s operational expertise, BP will likely keep out of the existing arrangement and let RIL head the operational front. BP will stick to bringing in the technical expertise in terms of technology and experienced professional from across the world.</P>